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CalPERS selects two more emerging managers

Through its venture with Canyon Capital, the $263 billion state pension system has made two more investments in early-stage real estate managers, bringing the total number of firms selected to four.

The California Public Employees’ Retirement System (CalPERS) has made two more investments in early-stage real estate managers through the Canyon Catalyst Fund, its $200 million emerging manager venture with Canyon Capital Realty Advisors. The $263 billion state pension system made its third investment through the program with Pacshore Partners last week and another investment with Sack Properties earlier this week.

In its third partnership through the emerging manager venture, CalPERS has entered into a partnership with Pacshore Partners that will result in $60 million to $100 million of office property acquisitions across southern California. Founded by Philip Orosco in 2012, the Los Angeles-based firm, which specializes in acquiring and repositioning office and mixed-use assets, currently is focused on identifying creative opportunities to capitalize on the emerging preference for open layouts and unique architectural features in the workplace.

“Philip is a talented and savvy real estate executive with a fantastic background in all aspects of office and mixed-use investment management,” said Maria Stamolis, managing director at Canyon Capital. “We are pleased to partner with Philip and his team at Pacshore Partners and share our expertise in urban investing to help expand their platform.”

Meanwhile, in its most-recent partnership through the Canyon Catalyst Fund, CalPERS has entered into a joint venture with Sack Properties that will result in $60 million to $100 million of multifamily property acquisitions in urban markets in northern California. Led by Kirby Sack, the daughter of founder Paul Sack, the San Francisco-based firm specializes in redeveloping multifamily properties in the San Francisco Bay Area, with a focus on properties in need of operational improvements and older properties in prime infill locations.

“Kirby and her team are excellent stewards of 1,290 residential units throughout several Bay Area communities, and she has an impressive in-house property management group that helps the company achieve operational efficiencies by combining resources across properties,” said Stamolis. “Sack Properties also enjoys strong relationships with property owners in the area, and we are confident that our partnership will enable the company to extend their platform even further.”

As previously reported by PERE, the $200 million Canyon Catalyst Fund, which will facilitate some $400 million of investment, is seeking up to six managers with less than $1 billion in assets under management and no more than three prior commingled funds or separate account investment vehicles. The program focuses on managers and assets in urban California markets and, once selected, Canyon Capital will mentor them through the fundraising process. Earlier this month, CalPERS selected its first two managers for the program – San Francisco-based Rubicon Point Partners and Los Angeles-based Paragon Commercial Group.